India has invited applications for the first round of import quotas for fully built UK-made vehicles under the India-UK Comprehensive Economic and Trade Agreement (CETA). 

In the initial phase, the government has opened quotas for 9,316 passenger vehicles for the 2026 calendar year, allowing eligible importers to bring in vehicles at concessional customs duties.

The Directorate General of Foreign Trade (DGFT) has announced that applications will be accepted from July 21 to August 4, 2026. Under the trade agreement, India has permitted the import of up to 3.78 lakh conventional passenger and goods vehicles from the UK over the agreed period, with tariffs being reduced in phases to improve bilateral trade.

The India-UK CETA, which came into force on July 15, 2026, aims to strengthen economic ties by lowering trade barriers and expanding market access across multiple sectors. 

For the automotive industry, the agreement is expected to offer Indian consumers greater access to premium UK-built vehicles while encouraging competition and technology transfer.

The phased tariff reductions are expected to benefit renowned British automotive brands, while also creating new opportunities for importers and dealerships in India. At the same time, the government has structured the quota system to balance consumer choice with the interests of domestic automobile manufacturers.

The opening of import quota applications marks a key step in implementing the India-UK trade pact and reflects India’s commitment to expanding global trade while supporting long-term growth in its automotive sector.

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